Australian workers will have their superannuation guarantee payments from their employer sent to new, no-frills, low fee, default super funds under a plan outlined by the federal government’s superannuation system review.
The review proposes that the superannuation industry be overhauled because most people do not take an active interest in their superannuation. Super funds currently cost too much and provide too many investment options to provide low cost super to most people who do not take an interest in their super.
About 90% of workers are currently being placed in default funds chosen by their employer or as prescribed in industrial awards.
